Appendix 9 - Consultation · Appendix 9 Consultation. Pengrowth Energy Corporation Lindbergh SAGD...

Appendix 9

Consultation

Pengrowth Energy CorporationLindbergh SAGD Expansion Project

First Nations Consultation Plan

Lindbergh SAGD Expansion ProjectFirst Nations Consultation Plan

Page 1

Pengrowth Energy Corporation (Pengrowth) is a publically traded Canadian oil and gas

exploration and production company based in Calgary, Alberta. Pengrowth operates numerous

oil and gas properties that span the Western Sedimentary Basin in Alberta, British Columbia

and Saskatchewan, with production averaging 86,000 barrels of oil equivalent per day (boed).

THE PROJECT

The planned facilities Pengrowth is proposing for the Lindbergh SAGD Expansion Project (the

Project) include a number of well pads and well pairs, and associated infrastructure including

roads, above ground gathering and distribution systems and an expansion of the existing

Central Processing Facility (CPF). Existing infrastructure such as the North Saskatchewan River

intake, and pipeline will also be utilized for the Project.

Raw water will be treated at the CPF and used to generate steam which is sent to each of the

well pads via above ground pipelines for injection into the individual well pairs. Produced

fluids (bitumen, water, gas) will be transported from the well pads to the CPF via above ground

pipelines. The bitumen, water and gas will be separated at the CPF. The produced gas will be

burned in the steam generators, the bitumen will be blended and trucked to a marketing point

until a sales pipeline is constructed. The water will be treated and recycled for steam

generation.

The Lindbergh SAGD Expansion Project will produce a maximum annualized bitumen rate of

30,000 barrels per day over an expected project life of 25 years. During the life of the Project

there will be 305 well pairs drilled from approximately 41 well pads. This Project is expected to

produce approximately 275 million barrels of bitumen over the project life. The cumulative

steam to oil ratio (CSOR) for the Project is expected to be 3.62.


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PROJECT LOCATION MAP


Page 3

THE CONSULTATION PLAN

Pengrowth has been actively consulting with communities adjacent to the Project site since they

purchased the property in 2004. Pengrowth has a stakeholder relations philosophy that is

consistent throughout operations in Western Canada, which ensures that all stakeholders

adjacent to their operations are fully informed with regards to all aspects of their operations

from exploration to development to production and reclamation. As a company, Pengrowth

works hard to be a good neighbour, a responsible partner and a valued member of every

community where operations occur. Pengrowth has an excellent operating and safety record

and is strongly committed to protecting the health and safety of team members and the public,

preserving the quality of the environment and supporting valued community groups and

initiatives. Pengrowth’s goal is to work with its neighbours and partners to ensure that

corporate activities foster strong communities.

In 2010 Pengrowth developed a plan to ensure that all First Nation communities and members

would have the opportunity to receive information relating to plans for the Lindbergh site.

Pengrowth plans on continuing its involvement in the area for the next 25 years. The

company’s objective is to build and operate a commercial SAGD facility to produce bitumen. In

support of the development of this project a number of exploration programs will be

undertaken to support the project development process.

Pengrowth will consult with the following First Nations Communities during the course of the

Project:

Frog Lake First Nation;

Cold Lake First Nation;

Kehewin Cree Nation;

Saddle Lake Cree Nation;

Whitefish (Goodfish) Lake First Nation I.R. 128; and

Onion Lake Cree Nation.

The consultation will be ongoing for the life of the Project, including timely, open dialogue

between company decision makers and leadership, staff and community members. The

objective of consultation will continue to be the provision of understandable information on all

aspects of the Project to the affected stakeholder communities. Those from Pengrowth involved

in consultation will listen and collect input from the community ensuring it is recorded and

incorporated where appropriate in plans for the Lindbergh SAGD Expansion Project.

Pengrowth will ensure that topics of discussion on the Project include education, training,

employment and economic development as appropriate to the size of the Project and the

Corporation.


Page 4

Consultation on all projects regardless of location or ownership should adhere to a number of

common principles. Pengrowth’s plan will abide by these principles:

1. Consultation with the First Nations communities will comply with all Consultation

Guidelines as outlined by the Province of Alberta.

2. Recognize that all First Nations are different and have their own manner of doing

business. Pengrowth will take these differences into consideration when consulting with

each First Nation.

3. Pengrowth is committed to long term programs and policies that will establish mutually

beneficial relationships for the life of the Project.

4. Records of meetings, discussions and other forms of communication will be compiled as

appropriate.

5. The schedule of consultation will take into account the busy schedules of the

communities and people involved.

6. Traditional Land Use information shared by the First Nations communities during the

consultation process will be treated in a proprietary manner.

Pengrowth will meet with the Chief and Council of each of the First Nations designated in the

plan. Pengrowth recognises that each community has their own way of addressing consultation

with considerations such as schedules, capacity, funding, population and location and

Pengrowth will seek advice from each community on how best to address their respective

consultation processes. Pengrowth will explain current and future project plans to the

leadership of each community. If and when requested, community representatives will be

given tours of the site to ensure that everyone understands the impact the Project will have on

the lands. These tours will allow the First Nation Elders to identify any traditional or cultural

locations or medicines that are located on the land to be disturbed. At minimum, Pengrowth

will adhere to Alberta’s First Nation Consultation Guidelines on Land Management and Resource

Development.

Pengrowth will direct all correspondence to the official consultation contact endorsed by each

First Nation listed on the IIAR website at http://www.aboriginal.alberta.ca/576.cfm.

Pengrowth will be using a variety of plain language story boards, power point presentation

material, handouts and maps at the open houses and community meetings. Presenters

attending these meetings will be schooled in plain talk and attentive listening skills prior to

participating. Managers and professionals involved in the Project will participate at these

meetings to ensure they hear firsthand what is discussed. Face to face conversation where

possible will ensure proper communication during the consultation process.

Pengrowth will advertise information addressing the Lindbergh SAGD Expansion Project in the

local newspapers including the Alberta Sweetgrass and/or Windspeaker, Elk Point Review,

St Paul Journal, Cold Lake Sun and the Bonnyville Nouvelle.


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Proposed Project Schedule

First Nations Consultation Q3 2013 to Q4 2014 and ongoing

Baseline environmental and engineering Q1 2012 to Q4 2013

Regulatory submission and review Q4 2013

Regulatory approval Q4 2015

Construction and drilling Q4 2015

Commissioning and production Q1 2017

Consultation Schedule

Project Activity Description Timing

Identify FN

communities adjacent

to the Project

Discussions with communities and government Q3 2013

Community

meetings/open

houses/formal and

informal meetings

Distribute Project information, listen to and record input,

document and mitigate issues.

Q3 2013 to Q4

2014

Distribute Application

to First Nations

Distribute application document and answer any

questions that may arise.Q1 2014

Future updates

Pengrowth will meet at least twice per year with each

designated First Nation to review Project progress and

discuss any related projects.

Q3 2013 and

ongoing

ONGOING FOLLOW UP

Pengrowth will continue the relationship formally on an ongoing basis to listen and talk to the

First Nations and their members for as long as the Project is active. On topics of business,

employment and training Pengrowth will continue discussions on a monthly basis as required.

Pengrowth will commit in writing to meet formally with the First Nations at least twice per

year. One of these meetings could be on the Lindbergh site.


Page 6

ESRD REPORTING SCHEDULE

Pengrowth will submit an ongoing consultation report to Alberta Environment and Sustainable

Resource Development (ESRD) every two months (Bi-Monthly Consultation Reports) until the

regulatory approval process is completed, copying individual reports to each Consultation

Group. The content of the consultation reports will be based on the information required under

Section 5.0 of Part III of Alberta’s First Nations Consultation Guidelines on Land Management and

Resource Development. A Final Consultation Report will be submitted once the consultation

efforts for the planning and regulatory approval processes are complete.

CONTACT INFORMATION

Pengrowth Energy Corporation2100, 222 3rd Avenue SW

Calgary, AB T2P 0B4

Doug WillyStakeholder Relations Consultant

(403) 269-5023 - Direct

(403) 813-1638 - [email protected]

PENGROWTH ENERGY CORPORATION

Lindbergh SAGD Expansion Project

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PENGROWTH ENERGY CORPORATION

Pengrowth Energy Corporation (Pengrowth) is a

publically traded Canadian oil and gas exploration

and production company based in Calgary, Alber-

ta. Pengrowth operates numerous oil and gas

properties that span the Western Sedimentary Ba-

sin in Alberta, British Columbia and Saskatche-

wan, with production averaging 86,000 barrels of

oil equivalent per day (boed).

Pengrowth's property portfolio contains some of

the highest quality assets in Canada's energy sec-

tor with an average reserve life index of approxi-

mately ten years on a proved plus probable basis.

Pengrowth's strong suite of conventional assets

(approximately 50% natural gas and 50% crude

liquids) is balanced by an expanding inventory of

unconventional resources including coalbed me-

thane and oilsands interests.

Our operational expertise is in the Western Canadian

Sedimentary Basin. We rely on our expertise to help

offset production declines in our conventional oil and

natural gas properties as well as develop new pro-

duction in less mature properties. Our inventory of

undeveloped land and opportunities provides future

drilling opportunities for the short and mid-term.

Our strategy is to utilize cash flow from conventional

operations to support our dividend and partially

fund the development of our Lindbergh Thermal Pro-

ject, whose low declines, long reserve life and capital

efficiencies are expected to produce long-term stable

cash flow.

PROJECT DESCRIPTION

In February 2012, Pengrowth began steam injection

into our two well pair Lindbergh SAGD Pilot Pro-

ject. Since that time the results outperformed expec-

tations as the two well pairs:

together produced in excess of 500,000 bar-

rels of bitumen since commencing produc-

tion in June 2012;

combined, as of February 28, 2013, were pro-

ducing in excess of 1,600 barrels per day

(bpd) of bitumen, with an ISOR of 1.7;

demonstrated faster than expected reservoir

response to steam; and

demonstrated lower than expected steam/oil

and diluent blending ratios.

These excellent pilot results and reserve potential

have given Pengrowth the confidence needed to ac-

celerate and expand the first 12,500 bpd phase of

commercial development, approved by the Board of

Directors on January 10, 2013. This project remains

on schedule and on budget, with an Environmental

Protection and Enhancement Act (EPEA) approval

received in May 2013 and significant production ex-

pected by late 2014.

The planned facilities for the Lindbergh SAGD Ex-

pansion Project (the Project) include a number of

well pads and well pairs, and associated infrastruc-

ture such as roads, above ground gathering and dis-

tribution systems and an expansion of the existing

Central Processing Facility (CPF). Existing infra-

structure such as the North Saskatchewan River in-

take, pump station and pipeline will also be utilized

for the Project.

Raw water will be treated at the CPF and used to

generate steam which is sent to each well pad via

above ground pipelines for injection into the indi-

vidual well pairs. Produced fluids (bitumen, water,

gas) will be transported from the well pads to the

CPF via above ground pipelines. The bitumen, wa-

ter and gas will be separated at the CPF. The pro-

duced gas will be burned in the steam generators,

the bitumen will be blended and trucked to a mar-

keting point until a sales line is constructed, and the

water will be treated and recycled for steam genera-

tion. All of these processes are used in the approved

12,500 bpd facility. The equipment for the expansion

is not meaningfully different.

The Project will produce a maximum annualized

bitumen rate of 30,000 bpd over an expected project

life of 25 years. During the life of the Project it is an-

ticipated that well pairs drilled from approximately

41 well pads producing 30,000 bpd for approximate-

ly 25 years will produce approximately 275 million

barrels of bitumen. The cumulative steam to oil ra-

tio (CSOR) for the Project is expected to be 3.62.

LINDBERGH PROJECT LOCATION

The Project is located approximately 24 km southeast of Bonnyville, Alberta, 18 km north of Lindbergh,

and 19 km east of the town of Elk Point in the County of St. Paul in the eastern-central region of Alberta.

Steam Assisted Gravity Drainage (SAGD) is an in-

situ thermal process used to recover heavy oil from

rock and/or soil formations. The process utilizes

multiple well pairs which are drilled both horizontal

and parallel, such that one wellbore is located direct-

ly above the other. The process begins with a short

circulation phase where steam is circulated through

both the upper (injection) and lower (production)

wells, until the space between them, and immediate-

ly surrounding them, becomes heated.

The heat decreases the viscosity of the heavy oil al-

lowing gravity to drain it down towards the produc-

tion well where it can then flow to the surface. As

the oil moves down, steam fills the empty pore spac-

es, eventually creating a “steam chamber” as the en-

SAGD PROCESS

spaces, eventually creating a “steam chamber” as the

entire space between the two wells is filled.

Once the steam chamber has been formed, steam

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is installed. Steam is still injected into the top injec-

tion well and as the steam chamber grows oil is mo-

bilized from as far as 50 meters away. All of this oil

drains into the lower production well and is then

pumped to the surface.

SAGD production offers advantages over conven-

tional and surface mining, such as greater per well

production rates, recoveries, and reduced water

treating costs. Compared to surface mining SAGD

also has substantially less surface disturbance.

At Pengrowth, we believe in making a positive im-

pact on every project; this is especially true when it

comes to our environmental impact.

Our goal is to eliminate or minimize the environ-

mental footprint in all activities. We strive not only

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than it was found, but also to promote environmen-

tally friendly, sustainable development in the com-

munities where we work and live. We know that the

actions taken today can have an impact today, to-

morrow and long into the future.

Currently a well and facility abandonment and site

restoration program is in place, under which we con-

tinue to assess and remediate sites impacted by his-

torical operations.

On our Lindbergh site we have taken this further, by

restoring lands that had been disturbed prior to our

project. We believe that this aids in reducing adverse

cumulative effects, and aligns with our goal to mini-

mize or eliminate our environmental footprint.

THE ENVIRONMENT

As part of our Environmental Impact Assessment

(EIA) process we will also be performing baseline

assessments to determine the potential impacts on:

Air Quality;

Groundwater;

Aquatic Resources;

Vegetation & Wetlands;

Soils & Terrain;

Wildlife;

Hydrology

Historical Resources;

Land Use;

Human Health ;

Socio-economic: and

Noise.

Picture: Seeding of an old well facility at the Lind-

bergh site

Picture: Post reclamation of an old well facili-

ty at the Lindbergh site

At Pengrowth we have a stakeholder relations phi-

losophy that is consistent throughout our operations

in Alberta. We ensure that all stakeholders adjacent

to our operations are fully informed with regards to

all aspects of the operations, from exploration to de-

velopment to production and reclamation.

As a company, we work hard to be a good neigh-

bour, a responsible partner, and a valued member of

every community where operations occur. We have

an excellent operating and safety record and are

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safety of team members and the public, preserving

The Project’s main benefits will be seen in a growing

number of job opportunities during construction, op-

eration and decommissioning, as well as significant

economic benefits to Alberta through taxes and roy-

alties. It is our intention to make these benefits avail-

able to surrounding communities and peoples within

the area. This may be done through certain policies,

such as a minimum percentage of full time employ-

ees/contractors being local to the area.

COMMUNITY AND STAKEHOLDER ENGAGEMENT

BENEFITS OF THE PROJECT

preserving the quality of the environment, and sup-

porting valued community groups and initiatives.

As a company, our goal is to work with neighbours

and partners to ensure that corporate activities foster

strong communities. We have successfully conclud-

ed a consultation plan for the 12,500 bpd Project.

This will be continued and expanded on throughout

the EIA application process. In order to ensure there

is dialogue that allows the identified communities to

be fully engaged, we will plan a series of meetings,

presentations and open houses as appropriate to lis-

ten and record ideas, issues and concerns that indi-

viduals and groups may have.

PROJECT DEVELOPMENT SCHEDULE

CONTACTS

Steve De Maio

Vice President, In Situ Oil Development and Operations

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Project Manager, Lindbergh

Doug Willy

Stakeholder Relations Consultant

Pengrowth Energy Corp.

2100, 222 Third Avenue SW

Calgary, AB T2P 0B4

Canada

Phone: (403) 233-0224

Email: [email protected]

GLOSSARY OF TERMS

In Situ Also known as “in place”, refers to methods of extracting deep deposits of oilsands without removing the groundcover. The in situ technology in oil sands usesunderground wells to recover the resources with less impact to the land, air andwater than traditional oil sands methods.

Reclamation The restoration of disturbed or wasteland to a state of useful capability. Reclama-tion is the initiation of the process that leads to a sustainable landscape, includingthe construction of stable landforms, drainage systems, wetlands, soil reconstruc-tion, addition of nutrients and revegetation. This provides the basis for naturalsuccession to mature ecosystems suitable for a variety of end uses.

SAGD Steam Assisted Gravity Drainage is an in-situ oil sands recovery technique thatinvolves drilling two horizontal wells, one to inject steam and a second to producethe bitumen.

Bitumen A highly viscous, tarry, black hydrocarbon material having an API gravity of about9° (specific gravity about 1.0). It is a complex mixture of organic compounds.Carbon accounts for 80 to 85% of the elemental composition of bitumen, hydrogen- 10%, sulphur - 5%, and nitrogen, oxygen and trace elements the remainder.

Equivalent land capability Means that the ability of the land to support various land uses after conservationand reclamation is similar to the ability that existed prior to an activity being con-ducted on the land, but that the individual land uses will not necessarily be identi-cal.

Injection well A well used for injecting fluids (air, steam, water, natural gas, gas liquids, surfac-tants, alkalines, polymers, etc.) into an underground formation for the purpose ofincreasing recovery efficiency.

Production Well A well used to extract bitumen after it has been heated with steam from the injec-tion well.

ACRONYMS

boed Barrels of oil equivalent per day

bpd Barrels per day

CPF Central Processing Facility

CSOR Cumulative Steam Oil Ratio

EPEA Environmental Protection and Enhancement Act

EIA Environmental Impact Assessment

Pengrowth Pengrowth Energy Corporation

Project Lindbergh SAGD Expansion Project

SAGD Steam Assisted Gravity Drainage

Bi-monthly Reports

Pursuant to the Government of Alberta’s First Nations Consultation Policy and Guidelines, PartIII, the proponent is responsible for documenting and reporting First Nation consultation.Documentation shall include, at a minimum, the following information:

i. A list of First Nations who were provided with project specific information;ii. Copies of the plain language, project specific information provided to First

Nations contacted;iii. How and when information was provided to First Nations involved in the

consultation process;iv. All dates and locations of activities and/or meetings undertaken throughout the

consultation process;v. Names of individuals and/or groups contacted within the First Nation and lists of

attendees at all meetings;vi. All documented records-of-decision, or minutes compiled throughout the

consultation process by either the project proponent or the First Nation;vii. A summary of consultation efforts and outcomes including any information regarding

potential adverse impacts to First Nations Traditional Rights and Uses;viii. Proposals for addressing the interests and/or concerns of First Nations involved in the

consultation process (i.e. avoidance or mitigation);ix. Where agreement has not been reached with respect to avoidance or mitigation of

potentially adverse impacts, written reasons be provided to the Crown;x. Any proposed follow-up with First Nations (if applicable); andxi. At the discretion of the Director, any other information that may be deemed

necessary to determine the adequacy of consultation.

Here are some finer points to consider regarding Bi-monthly content.

a. You need a good story in the bi-monthly report regarding what First Nation concernsare. These meetings are a venue to provide the First Nation an opportunity to expresstheir concerns, but they must be solicited for their input. Be sure to document in your bi-monthly report that you ask what their site specific concerns are. The bi-monthly mustdocument what these concerns are.

b. Be as specific as reasonable in the bi-monthly reports regarding concerns raised by FirstNations and mitigation efforts by the company. This will help in the final consultationadequacy review of your file.

c. You can provide me with meeting notes or other documentation at any time to furtherdetail concerns and accommodations, in addition to/or rather than going into great detailin the bi-monthly report.

d. Document in your bi-monthlies evidence that you have discussed the nature and scope ofthe potential adverse impacts of the project and that they were understood by the FirstNation.

e. The bi-monthly is not about discussing financial agreements or projects; however it doesnot hurt to have it in the report. Remember the adequacy review is based on evidence ofFirst Nation concern mitigation.

Remember that the determination of consultation adequacy is based on a comparison of thecontents of your bi-monthly reports against the following criteria.

1. Consultation was conducted in a meaningful way that supports the spirit of collaboration.

2. The information provided to First Nations was project specific, provided in a timelymanner and presented in a plain language form.

3. The nature and scope of the potential adverse impacts of the proposed project wereeffectively communicated and understood by all parties.

4. Rights and activities that could be potentially adversely impacted were specificallyidentified and understood.

5. Reasonable efforts were made on the part of the project proponent to avoid or mitigateFirst Nations concerns.

6. The extent of involvement by First Nations, including the nature and degree of theirparticipation in the process.

Record of Consultation Log (EXAMPLE)

Company/Proponent name; Project/activity name; First Nation consulted;

Note: Each Record of Consultation Log must be specific to one First Nation only. If multiple First Nations have been consulted, additional Record of Consultation Logs must be submitted as part of the Consultation Summary.

Date Proponent primary lead/contact

First Nation Representative(include names of individuals with whom consultation was undertaken)

Method of Contact and/or activity (Direct mail; Phone Call; Email; Meeting*; Other)

Issues and Concerns Raisedor Identified by First Nationconnected to hunting, fishing, and trapping for food, gathering, ceremonial locations, etc.

Strategies for Mitigation or Avoidance of Impact or Potential Impact

Outcomes / Comments

1

TERMS OF REFERENCE

ENVIRONMENTAL IMPACT ASSESSMENT REPORT

FOR PENGROWTH ENERGY CORPORATION’S PROPOSED

LINDBERGH SAGD EXPANSION PROJECT

Approximately 24 km from Bonnyville, Alberta

ISSUED BY: Pengrowth Energy Corporation

DATE: AUGUST 19, 2013

2

TABLE OF CONTENTS

PURPOSE OF THE TERMS OF REFERENCE .....................................................................................................3

SCOPE OF THE EIA REPORT ................................................................................................................................3

CONTENT OF THE EIA REPORT..........................................................................................................................4

1 PUBLIC ENGAGEMENT AND ABORIGINAL CONSULTATION...........................................................4

2 PROJECT DESCRIPTION ..............................................................................................................................4

2.1 OVERVIEW ..................................................................................................................................................42.2 CONSTRAINTS..............................................................................................................................................52.3 REGIONAL AND COOPERATIVE EFFORTS .....................................................................................................52.4 TRANSPORTATION INFRASTRUCTURE ..........................................................................................................62.5 AIR EMISSIONS MANAGEMENT ...................................................................................................................62.6 WATER MANAGEMENT ...............................................................................................................................72.7 WASTE MANAGEMENT ................................................................................................................................82.8 CONSERVATION AND RECLAMATION...........................................................................................................8

3 ENVIRONMENTAL ASSESSMENT ..............................................................................................................9

3.1 AIR QUALITY, CLIMATE AND NOISE............................................................................................................93.2 HYDROGEOLOGY.........................................................................................................................................93.3 HYDROLOGY .............................................................................................................................................103.4 SURFACE WATER QUALITY .......................................................................................................................113.5 AQUATIC ECOLOGY...................................................................................................................................113.6 VEGETATION .............................................................................................................................................123.7 WILDLIFE ..................................................................................................................................................133.8 BIODIVERSITY ...........................................................................................................................................133.9 TERRAIN AND SOILS ..................................................................................................................................143.10 LAND USE AND MANAGEMENT .................................................................................................................14

4 HISTORIC RESOURCES ..............................................................................................................................15

4.1 BASELINE INFORMATION...........................................................................................................................154.2 IMPACT ASSESSMENT ................................................................................................................................16

5 TRADITIONAL ECOLOGICAL KNOWLEDGE AND LAND USE ........................................................16

6 PUBLIC HEALTH AND SAFETY ................................................................................................................16

6.1 PUBLIC HEALTH ........................................................................................................................................166.2 PUBLIC SAFETY .........................................................................................................................................17

7 SOCIO-ECONOMIC ASSESSMENT ...........................................................................................................17

7.1 BASELINE INFORMATION...........................................................................................................................177.2 IMPACT ASSESSMENT ................................................................................................................................17

8 MITIGATION MEASURES...........................................................................................................................18

9 RESIDUAL IMPACTS....................................................................................................................................18

10 MONITORING ................................................................................................................................................18

3

PURPOSE OF THE TERMS OF REFERENCE

The purpose of this document is to identify for Pengrowth Energy Corporation, Aboriginalcommunities and appropriate stakeholders the information required by government agencies foran Environmental Impact Assessment (EIA) report prepared under the Environmental Protectionand Enhancement Act (EPEA) for the Lindbergh SAGD Expansion Project (the Project).

Pengrowth Energy Corporation (Pengrowth) is a publically traded Canadian oil and gasexploration and production company based in Calgary, Alberta. Pengrowth operatesnumerous oil and gas properties that span the Western Canadian Sedimentary Basin inAlberta, British Columbia and Saskatchewan, with production of approximately 86,000barrels of oil equivalent per day. Pengrowth owns a 100% working interest in the 11,190 haof oilsands mineral leases in the Lindbergh and Muriel fields.

The proposed Lindbergh SAGD Expansion Project (the Project) will be an expansion of theApproved Lindbergh SAGD Project, which will produce a maximum annualized bitumen rateof 1,987 m3/day (12,500 barrels per day (bpd)) and is located in the Cold Lake oilsands regionin the County of St. Paul. The plant site will expand on the plant site that is to be constructed aspart of the initial phase of the Lindbergh SAGD Project and will be located approximately 24km southeast of Bonnyville. The Project will increase the bitumen production from an initial1,987 m3/day (12,500 bpd) with the Lindbergh SAGD Project to 4,770 m3/day (30,000 bpd).

The Project will be comprised of well pads, observation wells, water disposal wells, a CentralProcessing Facility (CPF), a storm water pond, administration and maintenance buildings, acamp, and a parking area. The existing water source will be used for the expansion. The CPFwill be located on the east side of the lease in the west half of Section 25, Township 58,Range 5, West of the 4th Meridian, on the same footprint as the CPF for the approved LindberghSAGD Project.

Natural gas will be used for steam generation. A third-party supplier will provide power.Access to the Project will be via the existing access road that enters the facility from RangeRoad 50. Initial production will be transported by truck, and thereafter by pipeline or rail.

Subject to regulatory approval, construction of the Project is expected to commence in 2015with an anticipated operational start date in 2017. When fully constructed, there will be ananticipated 305 well pairs drilled from approximately 41 well pads. The Project is expected toproduce approximately 275 million barrels during its projected 25 year operation.

SCOPE OF THE EIA REPORT

The Proponent shall prepare and submit an EIA report that examines the environmental andsocio-economic effects of the Project.

The EIA report shall be prepared considering all applicable provincial and federal legislation,codes of practice, guidelines, standards, policies and directives.

The EIA report shall be prepared in accordance with these Terms of Reference and theenvironmental information requirements prescribed under EPEA and associated regulations, andthe Canadian Environmental Assessment Act if applicable. The EIA report will form part of theProponent’s application to the Alberta Energy Regulator (AER). An EIA report summary willalso be included as part of the AER Application.

4

The Proponent shall refer to the Guide to Preparing Environmental Impact Assessment Reportsin Alberta published by Alberta Environment and Sustainable Resource Development(the Guide) and these Terms of Reference when preparing the Environmental Impact Assessmentreport. In any case where there is a difference in requirements between the Guide and theseTerms of Reference, the Terms of Reference shall take precedence.

CONTENT OF THE EIA REPORT

1 PUBLIC ENGAGEMENT AND ABORIGINAL CONSULTATION

[A] Describe the concerns and issues expressed by the public and the actions taken to addressthose concerns and issues, including how public input was incorporated into the Projectdevelopment, impact mitigation and monitoring.

[B] Describe the concerns and issues expressed by Aboriginal communities and the actionstaken to address those concerns and issues, including how Aboriginal community inputwas incorporated into the Project, EIA development, mitigation, monitoring andreclamation. Describe consultation undertaken with Aboriginal communities and groupswith respect to traditional ecological knowledge and traditional use of land and water.

[C] Describe plans to maintain the public engagement and Aboriginal consultation processfollowing completion of the EIA report to ensure that the public and Aboriginal peopleswill have an appropriate forum for expressing their views on the ongoing development,operation and reclamation of the Project.

2 PROJECT DESCRIPTION

2.1 Overview

[A] Provide a brief project description in sufficient detail to provide context for the EIA,including:a) proponent information;b) proposed extraction and bitumen processing technology;c) amount and source of energy required for the Project;d) water supply and disposal requirements, including process water and potable water

requirements;e) proposed method to transport product to markets; andf) development plan and schedule.

[B] Provide maps and/or drawings of the Project components and activities including:a) existing infrastructure, leases and clearings, including exploration clearings;b) proposed central processing/treatment and field facilities;c) other buildings and infrastructure (e.g., pipelines and utilities);d) temporary structures;e) transportation and access routes;f) on-site hydrocarbon storage;g) containment structures such as retention ponds and storage ponds (e.g., lime sludge,

stormwater runoff, boiler blow-down);h) water wells/intakes, pipelines, and storage structures;i) sources of aggregate resources, borrow material and other construction material and

locations of any stockpiles that will be developed; and

5

j) waste storage area and disposal sites.

[C] Discuss the implications of a delay in proceeding with the Project, or any phase of theProject, or not going ahead with the Project.

[D] Describe the benefits of the project, including jobs created, local training, employmentand business opportunities, and royalties and taxes generated that accrue to:a) the Proponent;b) local and regional communities, including Aboriginal communities;c) the local authority;d) Alberta; ande) Canada.

[E] Provide the adaptive management approach that will be implemented throughout the lifeof the Project. Include how monitoring, mitigation and evaluation were incorporated.

2.2 Constraints

[A] Discuss the process and criteria used to identify constraints to development, and how theProject has been designed to accommodate those constraints. Include the following:a) any applicable Alberta Land Stewardship Act Regional Plan;b) how this project aligns with the Comprehensive Regional Infrastructure

Sustainability Plan for the Cold Lake Oil Sands Area;c) land use policies and resource management initiatives that pertain to the Project;d) Aboriginal traditional land use;e) all known traplines;f) the environmental setting;g) cumulative environmental impacts in the region;h) cumulative social impacts in the region;i) results of Project-specific and regional monitoring;j) potential for new or additional technology to increase resource recovery at later

times; andk) potential for changes in the regulatory regime.

[B] Discuss the selection criteria used, options considered, and rationale for selecting:a) location of facilities and infrastructure (including linear infrastructure); andb) thermal energy and electric power required for the Project.

[C] Provide a list of facilities for which locations will be determined later. Discuss theselection criteria that will be used to determine the specific location of these facilities.

2.3 Regional and Cooperative Efforts

[A] Discuss the Proponent’s involvement in regional and cooperative efforts to addressenvironmental and socio-economic issues associated with regional development.

[B] Describe opportunities for sharing infrastructure (e.g., access roads, utility corridors,water infrastructure) with other resource development stakeholders. Provide rationalewhere these opportunities will not be implemented.

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2.4 Transportation Infrastructure

[A] Prepare a Traffic Impact Assessment as per Alberta Transportation’s Traffic ImpactAssessment Guideline (http://www.transportation.alberta.ca/613.htm).

[B] Describe background traffic and consider the cumulative effects of traffic impacts due toother existing and planned developments using the same highways and accesses.

[C] Discuss anticipated changes to highway traffic (e.g., type, volume) due to the Project.

[D] Assess potential traffic impacts for all stages of the Project (e.g., construction, operation,maintenance, expansion, shutdown).

[E] Determine any necessary improvements and methods to mitigate traffic impacts.

[F] Describe and map the locations of any new road or intersection construction, or anyimprovements to existing roads or intersections, related to the development of the Project,from the boundary of the Project Area up to and including the highway access points, anda) discuss the alternatives and the rationale for selection for the preferred alternative;b) discuss compatibility of the preferred alternative and Alberta Transportation’s

immediate and future plans;c) describe the impacts to local communities of the changes in transportation and

infrastructure; andd) provide a proposed schedule for the work.

[G] Describe any infrastructure or activity that could have a potential impact on existingroads (e.g., pipelines or utilities crossing provincial highways, any facilities in closeproximity of the highways, any smoke, dust, noise, light or precipitation generated by theProject that could impact the highway and road users).

[H] Provide a summary of any discussions with Alberta Transportation in regards to theProject and its traffic impacts.

[I] Indicate where Crown land dispositions may be needed for roads or infrastructurerequired for the Project.

2.5 Air Emissions Management

[A] Discuss the selection criteria used, options considered, and rationale for selecting controltechnologies to minimize air emission and ensure air quality management.

[B] Provide emission profiles (type, rate and source) for the Project’s operating andconstruction emissions including point and non-point sources and fugitive emissions.Consider both normal and upset conditions. Discuss:a) odorous and visible emissions from the proposed facilities;b) annual and total greenhouse gas emissions during all stages of the Project. Identify

the primary sources and provide detailed calculations;c) the intensity of greenhouse gas emissions per unit of bitumen produced;d) the Project’s contribution to total provincial and national greenhouse gas emissions

on an annual basis;e) the Proponent’s overall greenhouse gas management plans;f) amount and nature of Criteria Air Contaminants emissions;

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g) the amount and nature of acidifying emissions, probable deposition patterns andrates;

h) control technologies used to reduce emissions;i) emergency flaring scenarios (e.g., frequency and duration) and proposed measures to

ensure flaring events are minimized;j) upset condition scenarios (e.g., frequency and duration) and proposed measures to

ensure upset conditions are minimized;k) gas collection and conservation, and the applicability of vapour recovery technology;l) applicability of sulphur recovery, acid gas re-injection or flue gas desulphurization to

reduce sulphur emissions; andm) fugitive emissions control technology to detect, measure and control emissions and

odours from equipment leaks.

2.6 Water Management

2.6.1 Water Supply

[A] Describe the water supply requirements for the Project, including:a) the criteria used, options considered and rationale for selection of water supply

sources(s);b) the expected water balance during all stages of the Project. Discuss assumptions

made or methods chosen to arrive at the water balances;c) the process water, potable water, and non-potable water requirements and sources for

construction (including, but not limited to, road construction, winter roadconstruction, lease construction, production well drilling and dust suppression),camp(s) and plant site, start-up, normal and emergency operating situations,decommissioning and reclamation. Identify the volume of water to be withdrawnfrom each source, considering plans for wastewater reuse;

d) the location of sources/intakes and associated infrastructure (e.g., pipelines for watersupply);

e) the variability in the amount of water required on an annual and seasonal basis as theProject is implemented;

f) the expected cumulative effects on water losses/gains resulting from the Projectoperations;

g) contingency plans in the event of restrictions on the Projects water supply source(e.g., due to license conditions, source volume limitations, climate change orcumulative impact water deficits);

h) potable water treatment systems for all stages of the Project;i) type and quantity of potable water treatment chemicals used; andj) measures for ensuring efficient use of water including alternatives to reduce the

consumption of non-saline water such as water use minimization, recycling,conservation, and technological improvements.

2.6.2 Surface Water

[A] Describe the surface water management strategy for all stages of the Project, including:a) design factors considered; and

8

b) permanent or temporary alterations or realignments of watercourses, wetlands andother waterbodies.

[B] Describe and map all roadway, pipeline, powerline and any other utility crossings ofwatercourses or waterbodies.

2.6.3 Wastewater Management

[A] Describe the wastewater management strategy, including:a) the criteria used, options considered and rationale for the selection of wastewater

treatment and wastewater disposal;b) the source, quantity and composition of each wastewater stream from each

component of the proposed operation (e.g., bitumen extraction and associatedfacilities) for all Project conditions, including normal, start-up, worst-case and upsetconditions;

c) the proposed disposal locations and methods for each wastewater stream;d) geologic formations for the disposal of wastewaters;e) design of facilities that will collect, treat, store and release wastewater streams;f) type and quantity of chemicals used in wastewater treatment; andg) sewage treatment and disposal.

2.7 Waste Management

[A] Discuss the selection criteria used, options considered, and rationale for waste disposal.

[B] Characterize and quantify the anticipated dangerous goods, and hazardous, non-hazardous, and recyclable wastes generated by the Project, and describe:a) the composition and volume of specific waste streams and discuss how each stream

will be managed;b) how the disposal sites and sumps will be constructed; andc) plans for pollution prevention, waste minimization, recycling, and management to

reduce waste quantities for all stages of the Project.

2.8 Conservation and Reclamation

[A] Provide a conceptual conservation and reclamation plan for the Project. Describe andmap as applicable:a) current land use and capability and proposed post-development land use and

capability;b) anticipated timeframes for completion of reclamation stages and release of lands

back to the Crown including an outline of the key milestone dates for reclamationand how progress to achieve these targets will be measured;

c) constraints to reclamation such as timing of activities, availability of reclamationmaterials and influence of natural processes and cycles including natural disturbanceregimes;

d) a revegetation plan for the disturbed terrestrial, riparian and wetland areas;e) reclamation material salvage, storage areas and handling procedures; andf) existing and final reclaimed site drainage plans.

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[B] Discuss, from an ecological perspective, the expected timelines for establishment andrecovery of vegetative communities and wildlife habitat, the expected success ofestablishment and recovery, and the expected differences in the resulting communities.

[C] Describe how the Proponent considered the use of progressive reclamation in projectdesign and reclamation planning.

[D] Discuss uncertainties related to the conceptual reclamation plan.

3 ENVIRONMENTAL ASSESSMENT

3.1 Air Quality, Climate and Noise

3.1.1 Baseline Information

[A] Discuss the baseline climatic and air quality conditions including:a) the type and frequency of meteorological conditions that may result in poor air

quality; andb) appropriate ambient air quality parameters.

3.1.2 Impact Assessment

[A] Identify components of the Project that will affect air quality, and:a) describe the potential for reduced air quality (including odours and visibility)

resulting from the Project and discuss any implications of the expected air quality forenvironmental protection and public health;

b) estimate ground-level concentrations of appropriate air quality parameters;c) discuss any expected changes to particulate deposition, nitrogen deposition or acidic

deposition patterns;d) identify areas that are predicted to exceed Potential Acid Input critical loading

criteria;e) discuss interactive effects that may occur resulting from co-exposure of a receptor to

all emissions; andf) describe air quality impacts resulting from the Project, and their implications for

other environmental resources.

[B] Identify stages or elements of the Project that are sensitive to changes or variability inclimate parameters, including frequency and severity of extreme weather events anddiscuss the potential impacts over the life of the Project.

[C] Summarize the results of the noise assessment conducted for the AER, and:a) identify the nearest receptor used in the assessment; andb) discuss the design, construction and operational factors to be incorporated into the

Project to comply with the AER’s Directive 38: Noise Control.

3.2 Hydrogeology


[A] Provide an overview of the existing geologic and hydrogeologic setting from the groundsurface down to, and including, the oil producing zones and disposal zones, and:

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a) present regional and Project Area geology to illustrate depth, thickness and spatialextent of lithology, stratigraphic units and structural features; and

b) present regional and Project Area hydrogeology describing:i) the major aquifers, aquitards and aquicludes (Quaternary and bedrock), their

spatial distribution, properties, hydraulic connections between aquifers,hydraulic heads, gradients, groundwater flow directions and velocities. Includemaps and cross sections,

ii) the chemistry of groundwater aquifers including baseline concentrations ofmajor ions, metals and hydrocarbon indicators,

iii) the potential discharge zones, potential recharge zones and sources, areas ofgroundwater-surface water interaction and areas of Quaternary aquifer-bedrockgroundwater interaction,

iv) water well development and groundwater use, including an inventory ofgroundwater users,

v) the recharge potential for Quaternary aquifers,vi) potential hydraulic connection between bitumen production zones, deep

disposal formations and other aquifers resulting from Project operations,vii) the characterization of formations chosen for deep well disposal, including

chemical compatibility and containment potential, injection capacity,hydrodynamic flow regime, and water quality assessments, and

viii) the locations of major facilities associated with the Project including facilitiesfor waste storage, treatment and disposal (e.g., deep well disposal) anddescribe site-specific aquifer and shallow groundwater conditions beneaththese proposed facilities. Provide supporting geological information.


[A] Describe Project components and activities that have the potential to affect groundwaterresource quantity and quality at all stages of the Project.

[B] Describe the nature and significance of the potential Project impacts on groundwater withrespect to:a) inter-relationship between groundwater and surface water in terms of both

groundwater and surface water quantity and quality;b) implications for terrestrial or riparian vegetation, wildlife and aquatic resources

including wetlands;c) changes in groundwater quality, quantity and flow;d) conflicts with other groundwater users, and proposed resolutions to these conflicts;e) potential implications of seasonal variations; andf) groundwater withdrawal for Project operations, including any expected alterations in

the groundwater flow regime during and following Project operations.

3.3 Hydrology


[A] Describe and map the surface hydrology in the Project Area.

[B] Identify any surface water users who have existing approvals, permits or licenses.

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[A] Describe the extent of hydrological changes that will result from disturbances togroundwater and surface water movement, and:a) include changes to the quantity of surface flow, water levels and channel regime in

watercourses (during minimum, average and peak flows) and water levels inwaterbodies;

b) assess the potential impact of any alterations in flow on the hydrology and identifyall temporary and permanent alterations, channel realignments, disturbances orsurface water withdrawals;

c) discuss the effect of these changes on hydrology (e.g., timing, volume, peak andminimum flow rates, river regime and lake levels), including the significance ofeffects for downstream watercourses; and

d) identify any potential erosion problems in watercourses resulting from the Project.

[B] Describe impacts on other surface water users resulting from the Project. Identify anypotential water use conflicts.

[C] Discuss the impact of low flow conditions and in-stream flow needs on water supply andwater and wastewater management strategies.

3.4 Surface Water Quality


[A] Describe the baseline water quality of watercourses and waterbodies and their seasonalvariations. Consider appropriate water quality parameters.


[A] Describe the potential impacts of the Project on surface water quality.

3.5 Aquatic Ecology


[A] Describe and map the fish, fish habitat and aquatic resources (e.g., aquatic and benthicinvertebrates) of the lakes, rivers, ephemeral water bodies and other waters. Describe thespecies composition, distribution, relative abundance, movements and general life historyparameters of fish resources. Also identify any species that are:a) listed as “at Risk, May be at Risk and Sensitive” in the General Status of Alberta

Wild Species (Alberta Environment and Sustainable Resource Development);b) listed in Schedule 1 of the federal Species at Risk Act;c) listed as “at risk” by COSEWIC; andd) traditionally used species.

[B] Describe and map existing critical or sensitive areas such as spawning, rearing, and over-wintering habitats, seasonal habitat use including migration and spawning routes.

[C] Describe the current and potential use of the fish resources by Aboriginal, sport orcommercial fisheries.

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[A] Describe and assess the potential impacts of the Project to fish, fish habitat, and otheraquatic resources, considering:a) habitat loss and alteration;b) increased fishing pressures in the region that could arise from the increased human

activity and improved access from the Project. Characterize the current use of localand regional fisheries resources to support the assessment of potential changes inangling pressure;

c) increased habitat fragmentation;d) acidification;e) groundwater-surface water interactions; andf) entrapment and entrainment of fish at water intakes.

[B] Identify the key aquatic indicators that the Proponent used to assess project impacts.Discuss the rationale for their selection.

[C] Identify plans proposed to offset any loss in the productivity of fish habitat. Indicate howenvironmental protection plans address applicable provincial and federal policies on fishhabitat including the development of a “No Net Loss” fish habitat objective.

3.6 Vegetation


[A] Describe and map the vegetation communities, wetlands, rare plants, old growth forests,and communities of limited distribution. Identify the occurrence, relative abundance anddistribution and identify any species that are:a) listed as “at Risk, May be at Risk and Sensitive” in the General Status of Alberta


[B] Describe and quantify the current extent of habitat fragmentation.


[A] Describe and assess the potential impacts of the Project on vegetation communities,considering:a) both temporary (include timeframe) and permanent impacts;b) the potential for introduction and colonization of weeds and non-native invasive

species;c) potential increased fragmentation and loss of upland, riparian and wetland habitats;

andd) implications of vegetation changes for other environmental resources (e.g., terrestrial

and aquatic habitat diversity and quantity, water quality and quantity, erosionpotential).

[B] Identify key vegetation indicators used to assess the Project impacts. Discuss therationale for the indicator’s selection.

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3.7 Wildlife


[A] Describe and map the wildlife resources (amphibians, reptiles, birds, and terrestrial andaquatic mammals). Describe species relative abundance, distribution and their use andpotential use of habitats. Also identify any species that are:a) listed as “at Risk, May be at Risk and Sensitive” in the General Status of Alberta


[B] Describe and map existing wildlife habitat and habitat disturbance including explorationactivities. Identify habitat disturbances that are related to existing and approved projects.


[A] Describe and assess the potential impacts of the Project to wildlife and wildlife habitats,considering:a) how the Project will affect wildlife relative abundance, habitat availability, mortality,

movement patterns, and distribution for all stages of the Project;b) how improved or altered access may affect wildlife;c) how increased habitat fragmentation may affect wildlife. Considering edge effects,

the availability of core habitat and the influence of linear features and infrastructureon wildlife movements and predator-prey relationships;

d) potential effects on wildlife resulting from changes to air and water quality,including both acute and chronic effects to animal health; and

e) potential effects on wildlife from the Proponent’s proposed and planned exploration,seismic and core hole activities, including monitoring/4D seismic.

[B] Identify the key wildlife and habitat indicators used to assess Project impacts. Discuss therationale for their selection.

3.8 Biodiversity


[A] Describe and map the existing biodiversity.

[B] Identify the biodiversity metrics, biotic and abiotic indicators that are used to characterizethe baseline biodiversity. Discuss the rationale for their selection.


[A] Describe and assess the potential impacts of the Project to biodiversity considering:a) the biodiversity metrics, biotic and abiotic indicators selected;b) the effects of fragmentation on biodiversity potential;c) the contribution of the Project to any anticipated changes in regional biodiversity and

the potential impact to local and regional ecosystems; andd) effects during construction, operations and post-reclamation and the significance of

these changes in a local and regional context.

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3.9 Terrain and Soils


[A] Describe and map the terrain and soils conditions in the Project Area.

[B] Describe and map soil types in the areas that are predicted to exceed Potential Acid Inputcritical loading criteria.


[A] Describe Project activities and other related issues that could affect soil quality(e.g., compaction, contaminants) and:a) indicate the amount (ha) of surface disturbance from plant, field (e.g., pads,

pipelines, access roads), aggregate and borrow sites, camps, drilling waste disposaland other infrastructure-related construction and operational activities;

b) discuss the relevance of any changes for the local and regional landscapes,biodiversity, productivity, ecological integrity, aesthetics and future use;

c) identify the potential acidification impact on soils and discuss the significance ofpredicted impacts by acidifying emissions; and

d) describe potential sources of soil contamination.

[B] Discuss:a) the environmental effects of proposed drilling methods on the landscape and surficial

and bedrock geology;b) the potential for changes in the ground surface during steaming and recovery

operations (e.g., ground heave and/or subsidence) and their environmentalimplications; and

c) the potential impacts caused by the mulching and storage of woody debrisconsidering, but not limited to, vulnerability to fire, degradation of soil quality,increased footprint.

3.10 Land Use and Management


[A] Describe and map the current land uses in the Project Area, including all Crown landdispositions and Crown Reservations (Holding Reservation, Protective Notation,Consultative Notation).

[B] Indicate where Crown land dispositions may be needed for roads or other infrastructurefor the Project.

[C] Identify and map unique sites or special features such as Parks and Protected Areas,Heritage Rivers, Historic Sites, Environmentally Significant Areas, culturally significantsites and other designations (e.g., World Heritage Sites, Ramsar Sites, InternationallyImportant Bird Areas).

[D] Describe and map land clearing activities, showing the timing of the activities.

[E] Describe the status of timber harvesting arrangements, including species and timing.

[F] Describe existing access control measures.

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[A] Identify the potential impacts of the Project on land uses, including:a) unique sites or special features;b) changes in public access arising from linear development, including secondary

effects related to increased hunter, angler and other recreational access andfacilitated predator movement;

c) aggregate reserves that may be located on land under the Proponent’s control andreserves in the region;

d) development and reclamation on commercial forest harvesting and fire managementin the Project Area;

e) the amount of commercial and non-commercial forest land base that will bedisturbed by the Project, including the Timber Productivity Ratings for the ProjectArea. Compare the baseline and reclaimed percentages and distribution of allforested communities in the Project Area;

f) how the Project impacts Annual Allowable Cuts and quotas within the ForestManagement Agreement area;

g) the operations of any agricultural crown leases and provincial grazing reserves;h) anticipated changes (type and extent) to the topography, elevation and drainage

patterns within the Project Area; andi) access control for public, regional recreational activities, Aboriginal land use and

other land uses during and after development activities.

[B] Describe how Integrated Land Management has been used (e.g., sharing of infrastructure,access requirements).

[C] Provide a fire control plan highlighting:a) measures taken to ensure continued access for firefighters to adjacent wildland areas;b) forest fire prevention, detection, reporting, and suppression measures, including

proposed fire equipment;c) measures for determining the clearing width of power line rights-of-way; andd) required mitigative measures for areas adjacent to the Project Area based on the

FireSmart Field Guide for the Upstream Oil and Gas Industry.

4 HISTORIC RESOURCES

4.1 Baseline Information

[A] Provide a brief overview of the regional historical resources setting including adiscussion of the relevant archaeological, historic and palaeontological records.

[B] Describe and map known historic resources sites in the Project area, considering:a) site type and assigned Historic Resources Values; andb) existing site specific Historical Resources Act requirements.

[C] Provide an overview of previous Historical Resources Impact Assessments that havebeen conducted within the Project Area, including:a) a description of the spatial extent of previous assessment relative to the Project Area,

noting any assessment gap areas; and

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b) a summary of Historical Resources Act requirements and/or clearances that havebeen issued for the Project to date.

[D] Identify locations within the Project Area that are likely to contain previously unrecordedhistoric resources. Describe the methods used to identify these areas.

4.2 Impact Assessment

[A] Describe Project components and activities that have the potential to affect historicresources at all stages of the Project.

[B] Describe the nature and magnitude of the potential Project impacts on historicalresources, considering:a) effects on historic resources site integrity; andb) implications for the interpretation of the archaeological, historic and palaeontological

records.

5 TRADITIONAL ECOLOGICAL KNOWLEDGE AND LAND USE

[A] Provide:a) a map and description of traditional land use areas including fishing, hunting,

trapping and nutritional, medicinal or cultural plant harvesting by affectedAboriginal peoples (if the Aboriginal community or group is willing to have theselocations disclosed);

b) a map of cabin sites, spiritual sites, cultural sites, graves and other traditional usesites considered historic resources under the Historical Resources Act (if theAboriginal community or group is willing to have these locations disclosed), as wellas traditional trails and resource activity patterns; and

c) a discussion of:i) the availability of vegetation, fish and wildlife species for food, traditional,

medicinal and cultural purposes in the identified traditional land use areasconsidering all Project related impacts,

ii) access to traditional lands in the Project Area during all stages of the Project,and

iii) Aboriginal views on land reclamation.

[B] Describe how Traditional Ecological Knowledge and Traditional Land Use informationwas incorporated into the Project, EIA development, the conservation and reclamationplan, monitoring and mitigation.

[C] Determine the impacts of the Project on traditional, medicinal and cultural purposes andidentify possible mitigation strategies.

6 PUBLIC HEALTH AND SAFETY

6.1 Public Health

[A] Describe aspects of the Project that may have implications for public health or thedelivery of regional health services. Determine quantitatively whether there may beimplications for public health arising from the Project.

[B] Document any health concerns raised by stakeholders during consultation on the Project.

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[C] Document any health concerns identified by Aboriginal communities or groups resultingfrom impacts of existing development and of the Project, specifically on their traditionallifestyle. Include an Aboriginal receptor type in the assessment.

[D] Describe the potential health impacts resulting from higher regional traffic volumes andthe increased risk of accidental leaks and spills.

6.2 Public Safety

[A] Describe aspects of the Project that may have implications for public safety. Specifically:a) describe the emergency response plan including public notification protocol and

safety procedures to minimize adverse environmental effects, including emergencyreporting procedures for spill containment and management;

b) document any safety concerns raised by stakeholders during consultation on theProject;

c) describe how local residents will be contacted during an emergency and the type ofinformation that will be communicated to them;

d) describe the existing agreements with area municipalities or industry groups such assafety cooperatives, emergency response associations, regional mutual aid programsand municipal emergency response agencies; and

e) describe the potential safety impacts resulting from higher regional traffic volumes.

7 SOCIO-ECONOMIC ASSESSMENT

7.1 Baseline Information

[A] Describe the existing socio-economic conditions in the region and in the communities inthe region.

[B] Describe factors that may affect existing socio-economic conditions including:a) population changes;b) workforce requirements for all stages of the Project, including a description of when

peak activity periods will occur;c) planned accommodations for the workforce for all stages of the Project. Discuss the

rationale for their selection;d) the Proponent’s policies and programs regarding the use of local, regional and

Alberta goods and services;e) the project schedule; andf) the overall engineering and contracting plan for the Project.

7.2 Impact Assessment

[A] Describe the effects of construction and operation of the Project on:a) housing;b) availability and quality of health care services;c) local and regional infrastructure and community services;d) recreational activities;e) hunting, fishing, trapping and gathering; andf) First Nations and Métis (e.g., traditional land use and social and cultural

implications).

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[B] Describe the socio-economic effects of any new or existing camp(s) required for theProject and identify:a) its location;b) the number of workers it is intended to house;c) whether the camp will service the Project only or other clients;d) the length of time the camp will be in service;e) describe the services that will be provided in the camp (e.g., security, recreation and

leisure, medical services), including a description of the impacts on Municipal orother external services; and

f) outline the emergency services and evacuation plan that will be in place.

[C] Describe the need for additional Crown land.

[D] Discuss opportunities to work with First Nation and Métis communities and groups, otherlocal residents and businesses regarding employment, training needs and other economicdevelopment opportunities arising from the Project.

[E] Provide the estimated total Project cost, including a breakdown for engineering andproject management, equipment and materials, and labour for both construction andoperation stages. Indicate the percentage of expenditures expected to occur in the region,Alberta, Canada outside of Alberta, and outside of Canada.

8 MITIGATION MEASURES

[A] Discuss mitigation measures planned to avoid, minimize or eliminate the potentialimpacts for all stages of the Project.

[B] Identify the mitigation objectives for each associated impact and describe thosemitigation measures that will be implemented. Provide rationale for their selection,including a discussion on the effectiveness of the proposed mitigation.

9 RESIDUAL IMPACTS

[A] Describe the residual impacts of the Project following implementation of the Proponent’smitigation measures and the Proponent’s plans to manage those residual impacts.

10 MONITORING

[A] Describe the Proponent’s current and proposed monitoring programs, including:a) how the monitoring programs will assess any project impacts and measure the

effectiveness of mitigation plans. Discuss how the Proponent will address anyProject impacts identified through the monitoring program;

b) how the Proponent will contribute to current and proposed regional monitoringprograms;

c) monitoring performed in conjunction with other stakeholders, including Aboriginalcommunities and groups;

d) new monitoring initiatives that may be required as a result of the Project;e) regional monitoring that will be undertaken to assist in managing environmental

effects and improve environmental protection strategies;f) how monitoring data will be disseminated to the public, Aboriginal communities or

other interested parties; and

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g) how the results of monitoring programs and publicly available monitoringinformation will be integrated with the Proponent’s environmental managementsystem.

Project Summary Table

Proponent Name: Pengrowth Energy Corporation Date: August 15, 2013

Project Name:Lindbergh SAGD Expansion

ProjectCompany ContactName and Information:

Steve De Maio

VP, In Situ Oil Development and

Operations

2100, 222-3rd Avenue SW

Calgary, AB T2P 0B4

Telephone: (403) 233-0224

Email: [email protected]

Name of Companythat will hold Approval:

Pengrowth Energy Corporation Company Website: www.pengrowth.com

Type of Project (e.g.,in-situ, mine, quarry,upgrader, etc.):

In-SituNew Project,Expansion, AdditionalPhase or Modification:

Expansion

Projected ConstructionStart (Month/Year):

Q4, 2015 Projected OperationStart (Month/Year):

Q1, 2017

Life of Project (#years, YYYY – YYYY):

25 years, 2017 - 2042

Project Location (LegalLand Description andLongitude/Latitude)and Municipality:

Sections 5, 6, 7, 8, 17, 18, 19, 20, 29,

30, 31, and 32 of Twp. 58, Range 4,

W4M;

Sections 1, 2, 3, 10, 11, 12, 13, 14, 15,

22, 23, 24, 25, 26, 27, 34, 35, and 36

of Twp. 58, Range 5, W4M;

Twp. 59, Range 4, W4M; and

Sections 1, 2, 11, 12, 13, and 14 of

Twp. 59, Range 5, W4M

Total Project Area(ha):

18,837 ha Private, Federal orProvincial Land:

Private and Provincial Land

Nearest Residence(s)(km):

Nearest residence is located

approximately 4.4 km from the

Central Processing Facility.

Types of Activity(major projectprocesses,components includingcapacity/size, ifavailable):

Central Processing Facility (CPF),

well pads, tankage, co-gen plant,

disposal wells, product line,

powerline, roads, camps.

Nearest First NationReserve(s) and MétisSettlements (nameand km):

Kehewin I.R. 123, 6.7 km

Unipouheos I.R. 121, 8.9 km

Puskiakiwenin I.R. 122, 1.9 km

Cold Lake I.R. 149, 10.8 km

Project Products: Bitumen.

Power Source (if onsite power generationdescribe quantity(MW) and facilities):

On-site co-gen. An additional

13 MW will be generated.

Method of ProductTransport (e.g.,pipeline, rail, truck,etc.):

Truck or pipeline.

Average ProductionCapacity per Year(specify units):

Additional increase in capacity

of 17,500 bpd for a total project

production of 30,000 bpd

(4,770 m3/d)

InfrastructureRequirements (e.g.,roads, pipelines, waterintake, storage,tankage, etc.):

Roads, pipelines, powerlines,

roads.

Location of EndMarket:

Various, according to market

conditions.

Expected Types of AirEmissions (e.g., SO2,NOX, CO2, etc.):

SO2, NOX, CO, PM2.5.

Project By-Products:Sulphur, water treatment waste

or sludge, drilling waste.Types of WastesGenerated:

Sulphur, water treatment waste or

sludge, drilling waste, off-spec oil.

Expected Types ofEffluent Releases(note the water bodiesthe effluent will bereleased to):

None.

Excess stormwater not consumed

in the CPF will be released to

surroundings if it meets

approved standards.

NearestWaterway/Waterbody(name and km):

Garnier Lake, Bullet Lake, Dion

Lake, portions of Muriel Lake,

Reita Lake and Michel Lake, as

well as a number of streams lie

within the Project Area.

Waste ManagementFacilities (i.e.,Disposal Well, SaltCaverns, Landfill, orThird-Party):

Disposal Well, Third-PartyEPEA ApprovalRequired(Y/N/Unknown):

Yes

WatercourseCrossings (type ofcrossing, any Class Ato C waterbodies):

Class C.

Water Act LicenceRequired(Y/N/Unknown. If yes,purpose, source andestimated volumes):

No. Pengrowth has sufficient

source water with the approved

Lindbergh SAGD Project.

Regulatory Board(s)(ERCB/NRCB/AUC):

AER & AUC.Waterbodies Required(Y/N/Unknown/NA. Ifyes, # and ha):

No. Existing CPF storm water and

source water ponds will continue

to be used.

Water Act ApprovalRequired(Y/N/Unknown. If yes,purpose):

Unknown.

Will any of thecomponents oractivities associatedwith the project affectfish and/or fishhabitat? (Y/N):

No.

Identify applicablesections in theSchedule to theFederalComprehensive StudyList Regulations:(Y/N/Unknown):

No.

Identify applicablefederal legislative orregulatoryrequirements referredto in the Law ListRegulations (i.e.,permits, licenses,authorizations):

None.

Are any works orundertakings proposedto take place in, on,over, under, through oracross a navigablewater? (Y/N):

No.Nearest Water Well(km) (Domestic andCommercial):

The nearest registered domestic

wells are located in SW 15-058-05-

W4M, approximately 4.1 km from

the CPF.

The nearest registered industrial

well is located in NE 13-058-05-

W4M, approximately 2.5 km from

the CPF.

Nearest ProvincialHighway (# anddistance):

Highway #657 runs through the

northern portion of the Project

Area.

Access Improvementsto Provincial Highway:

None.

Traffic ImpactAssessment Required(Yes/No/Unknown):

Yes. Total Area to beDisturbed (ha):

813 ha

Identify Existing Landand Water Use(s),ResourceManagement, orConservation PlansWithin or Near theProject site:

Cattle grazing, agricultural,

oilfield production, recreational,

private land, traditional uses.

Post-reclamation LandUse(s):

Cattle grazing, agricultural, oilfield

production, recreational, private

land, traditional uses.

DecommissioningStart and End (YYYY-YYYY):

2042 - 2043 Reclamation Start andEnd (YYYY - YYYY):

2020 - 2050

Unique Environmentalor SocialConsiderations(Describe or None):

Private land, traditional use,

grazing lease and trapping.

Historic ResourcesImpact AssessmentRequired(Y/N/Unknown):

Yes.

EstimatedConstruction Person-Years of Employment:

400Estimated OperationPersons-Years ofEmployment:

40

Construction orOperation CampRequired(Y/N/Unknown. If yes,on-site or off-site):

Yes. On-site.

Method of Transport ofEmployees to Site(Construction andOperation):

Vehicle Transport.

Will the project involvethe manufacture andstorage of explosives(Y/N):

No.

Is there any federalauthority that is, ormay be, providingfinancial support to theProject (Y/N. If yes,identify the federalauthority):

No.

Date StakeholderEngagement Started(Public/Aboriginal):

Q3 2013.

Aboriginal GroupsInvolved inStakeholderEngagement:

Kehewin Cree Nation, I.R.123

Onion Lake First Nation,

I.R. 120

Frog Lake First Nation, I.R. 122

Saddle Lake Cree Nation,

I.R. 125

Whitefish (Goodfish) Lake First

Nation, I.R. 128

Public Groupsinvolved inStakeholderEngagement:

LICA

County of St. Paul

MD of Bonnyville

Town of Elk Point

Town of Bonnyville

Grazing lease holders

Other companies

Trappers

Freehold land owners

Muriel Lake Basin

Management Society

_̂

_̂

_̂

_̂

Lindbergh Project Area

Cold LakeI.R. 149B

Cold LakeI.R. 149

Moose LakeProv. Park

Cold LakeProv. Park

T55

R 8

Beaver R iver

Muriel Creek

Sand River

Nor

thSaskatchewan Ri ver

FrogLake

ColdLake

MurielLake

MooseLake

SinkingLake

²³

55

²³

41

²³

28

²³

28A

²³

41

²³

28

²³

55

²³

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��897

��646

��659

��640

��882

��893

��892

��

��660

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Holyoke

Ardmore

Glendon

La Corey

Elk Point

Cold Lake

Heinsburg

Beaverdam

Fort Kent

Bonnyville

Grand Centre

Northern Valley

Lindbergh

R 2

T62

T61

T59

T60

T58

T57

T56

T63

R 4R 5 R 3R 6R 7 R 1 W4M

Whitney LakesProv. Park

KehewinI.R. 123

UnipouheosI.R. 121

PuskiakiweninI.R. 122

BONNYVILLE NO. 87

ST. PAUL COUNTY NO. 19

TWO HILLS COUNTY NO. 21

VERMILION RIVER COUNTY NO. 24

ST. PAUL COUNTY NO. 19

BONNYVILLE NO. 87

I

0 6 123

Kilometres

MapArea

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Calgary

Edmonton

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REF: Geobase, 2010.

1

KD

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July 12/13

11-033

Lindbergh SAGD Expansion Project

PROJECT:

DATE:

CHECKED:

DRAWN: FIGURE:TITLE:

Project Location

PROJECT:

Legend

_̂ Historical Site

Project Area

ESAs2009

Key Wildlife andBiodiversity Zone

Colonial Nesting Bird Area

American White Pelican

Great Blue Heron

Provincial Park

First Nations

Railway

Secondary

Primary

Appendix 9 - Consultation · Appendix 9 Consultation. Pengrowth Energy Corporation Lindbergh SAGD...

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